Why do coffee shops fail?
Lots of reasons but here are my top 3 reasons:
1- The owner/manager is not a business person and doesn’t get the numbers
2- They take out to big a loan to kit the place out and the repayments kill them, why? see point 1
3- They pay to much in rent, why? see point 1
If you understand your numbers then you would know exactly what rent you can pay and what rent you can’t, what repayments you can pay on a loan and what you can’t. We have a spreadsheet that we can plug numbers in for a new location and it tells us what we can afford to do on each area of the business (rent, rates, fit out, loan repayments etc).
Some things are an estimate like daily sales but if you carry out a footfall survery you can get pretty close figures for daily sales.